Brendan Smith (Cavan-Monaghan, Fianna Fail)
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58. To ask the Minister for Finance if he is aware of the serious concern of fuel merchants in the Border counties following the imposition of a carbon tax on household fuel products; that the viability of many of these businesses is under threat; that revenue is being lost to the State; his plans to reduce the level of carbon tax; and if he will make a statement on the matter. [17516/16]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the concerns that fuel traders in the border counties have expressed that the price differential with Northern Ireland for solid fuel could give rise to trade distortions. The introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment. In this regard solid fuels, which have been traditionally favoured by household consumers, have the highest carbon content of all fossil fuels.  As a result they are considered the dirtiest fuels and given the environmental impact it is important they are taxed.  While the carbon tax was introduced for transport fuels in December 2009, its application to solid fuels was delayed to allow for the development of a robust mechanism to counter the large scale sourcing of coal from Northern Ireland where lower sulphur standards apply. Such a mechanism is in place since June 2011 and the carbon tax was then applied to solid fuel on a phased basis in 2013 and 2014.Coupled with the long lead in period to the implementation of carbon tax on solid fuels generous grants have also been provided, through the Sustainable Energy Authority of Ireland, via Better Energy Homes and also provides home energy upgrades free of charge to vulnerable households via Better Energy Warmer Homes to reduce dependence on combustion of fossil fuels for home heating.  The Better Energy Homes Scheme has to date provided over €190m in funding to over 185,000 homes resulting in a reduced energy demand. The carbon tax, as part of the overarching energy strategy, is a key tool to reduce emissions towards meeting our climate change commitments.  Greenhouse gases are contributing to climate change and as a signatory to the UNCOP 21 Paris Agreement, Ireland has committed to play its part in reducing emissions.  The carbon tax is deemed to be the most cost effective way of reducing overall emissions and therefore plays an important role in providing incentives for emission reduction activities in this regard, and it is important the tax is levied on all fossil fuels fairly to encourage behavioural changes. Accordingly, I do not intend to reduce the rate of carbon tax.